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In course of the previous trading week, the EUR/USD currency pair continued to depreciate moderately, entering the negative trend. The single European currency was mainly affected by Federal Reserve announcement that openly acknowledged a potential rate hike at the upcoming Fed meeting in June. Looking at the bigger picture, during the previous trading week the cross was seen near the one-month low of soaring around 1.1178. On Thursday, the Euro tried to make some attempts, in order to regain some value, since dollar was negatively affected by US durable goods orders data, which showed firm advance by 3.4% in April, from an upwardly revised 1.9% booked in March. In addition, 268,000 people asked for unemployment benefits for the first time in the week that ended on May 21. Eventually, on Friday, the was no able to defend its positions and went down to its ten-week as the prospects of a summer rate hike in the US supported the greenback.
This week the sentiment dropped considerably, as 63% of all traders, who participated in our weekly Community Forecasts quiz, expect the Euro to lose. Concerning economic reports, current week will be rich in them. The US data will include reports on ISM Manufacturing PMI on Wednesday as well as unemployment rate and nonfarm payrolls on Friday. From the European side, traders could pay additional attention to the producer price index and ECB rate decision on Thursday.
© Dukascopy Bank SA